Top 5 sedimentary lithium projects to watch in the U.S. after 2025

As the United States accelerates its race to secure domestic supplies of critical minerals, sedimentary lithium is emerging as a strategic frontier. In contrast to conventional hard rock and brine-based lithium resources, these claystone-hosted deposits — abundant across Nevada, Oregon, and Arizona — offer vast scale but face persistent challenges in processing, cost efficiency, and permitting. With policy momentum building through the Inflation Reduction Act, Defense Production Act, and U.S. Department of Energy loan programs, 2025 marks a turning point where the U.S. aims to prove that sedimentary lithium can scale commercially.

Amid volatile lithium prices and an evolving EV battery supply chain, five U.S.-based projects stand out in terms of resource scale, technical progress, government support, and strategic positioning. These developments offer global investors and policymakers a lens into the next phase of America’s clean energy resource independence.

Why Sedimentary Lithium Is Critical for U.S. Energy Security in 2025

Global demand for lithium is expected to nearly triple by 2030, driven by electric vehicles, stationary storage, and industrial decarbonization. However, the U.S. currently accounts for less than 2% of global lithium production. Sedimentary lithium — primarily found in ancient lakebed formations — represents one of the few resource classes where the U.S. holds a strategic advantage.

Policy frameworks like the DOE’s Advanced Technology Vehicles Manufacturing (ATVM) loan program and EV battery tax credits now explicitly favor projects that localize both extraction and chemical conversion. That policy shift is breathing new life into deposits once deemed commercially infeasible due to technical complexity.

1. Rhyolite Ridge – Ioneer Ltd (NASDAQ: IONR, ASX: INR)

Ioneer Ltd (NASDAQ: IONR) controls the Rhyolite Ridge Project in Nevada, one of the most advanced sedimentary lithium projects in the world. As of June 2025, the company holds 100% ownership following the withdrawal of former joint venture partner Sibanye-Stillwater. The project is fully permitted at both federal and state levels and has secured a $996 million loan commitment from the U.S. Department of Energy to fund its on-site processing facility.

Ioneer recently quadrupled its ore reserve to 247 million tonnes, supporting a projected mine life of 95 years. Annual production is estimated at ~22,000 tonnes of lithium carbonate equivalent (LCE) and ~116,000 tonnes of boric acid, making it a dual-revenue operation — a rarity in the global lithium sector. Offtake agreements are in place with Ford Motor Company, EcoPro, Prime Planet Energy & Solutions (Toyota–Panasonic JV), and Dragonfly Energy.

Despite its advantages, the company has yet to secure the equity financing required for its Final Investment Decision (FID), which it expects to complete in H2 2025. The earliest possible start for construction is late 2025, with first production targeted in 2028.

Sentiment Summary: Institutional sentiment has stabilized post-Sibanye exit, with buy-side interest now tied to equity partner closure. As of May 30, 2025, Ioneer’s market capitalization stood at A$283 million, with ADRs trading at $3.43.

2. Thacker Pass – Lithium Americas Corp. (NYSE: LAC)

Lithium Americas Corp. (NYSE: LAC) is developing the Thacker Pass Project in Humboldt County, Nevada. Holding the largest measured lithium resource in the U.S., the site boasts over 3 million tonnes of LCE and has already begun construction as of 2024. The project is backed by a $650 million conditional DOE loan and a strategic equity investment from General Motors.

The first phase of development targets ~40,000 tonnes of annual lithium production, scaling up to 80,000 tonnes in Phase 2. The project uses a sulfuric acid leaching process and is expected to be one of the first sedimentary lithium operations globally to enter full-scale production — with first output projected for 2026.

Sentiment Summary: Widely seen as a flagship for U.S. lithium independence, Thacker Pass remains a high-conviction institutional pick. Analysts have flagged regulatory and environmental hurdles as managed risks post-BLM approval.

3. McDermitt Lithium Project – Jindalee Resources (ASX: JRL)

Jindalee Resources Ltd (ASX: JRL), an Australian-listed company, is progressing the McDermitt Lithium Project just north of the Nevada border in Oregon. The project is in early-stage exploration but already reports an inferred resource exceeding 3 billion tonnes of mineralized claystone, positioning it among the largest undeveloped lithium assets globally.

The company is currently advancing environmental baseline studies and expects to publish a pre-feasibility study by 2026. While production is still years away, McDermitt’s resource scale makes it a top-tier target for future strategic investments, particularly from U.S.-aligned governments or industrial partners.

Sentiment Summary: Currently off most institutional radar due to early-stage status, but the geological footprint is drawing attention from long-horizon capital.

4. Clayton Valley Project – Century Lithium Corp. (TSXV: LCE)

Century Lithium Corp. (TSXV: LCE) is developing the Clayton Valley Lithium Project in Nevada, adjacent to Albemarle’s Silver Peak brine operation. The company operates a pilot plant in Amargosa Valley and is progressing toward a full Definitive Feasibility Study (DFS) expected in late 2025.

The project targets lithium extraction from hectorite clay using hydrochloric acid leaching, a different flow sheet from sulfuric-based competitors. Estimated production could exceed 27,000 tonnes of LCE annually, contingent on DFS results and permitting outcomes.

Sentiment Summary: Institutional interest is increasing, especially from North American battery suppliers looking to diversify away from brine-dominated portfolios.

5. Big Sandy Project – American Battery Technology Company (NASDAQ: ABAT)

American Battery Technology Company (NASDAQ: ABAT) is developing the Big Sandy Lithium Project in Arizona. Still in the early stages of exploration and permitting, the project is being positioned as a feedstock source for ABTC’s own lithium hydroxide refinery under construction in Tonopah, Nevada.

While its resource scale is modest compared to peers, Big Sandy’s integration into a vertically aligned battery materials strategy offers a unique proposition. If permitted, it could become a localized supplier of low-carbon lithium for U.S.-based cathode manufacturers.

Sentiment Summary: Market sentiment is cautious but intrigued by ABTC’s fully integrated model. Execution on refinery milestones will likely dictate Big Sandy’s investor appeal.

Can the U.S. Dominate Sedimentary Lithium by 2030?

Sedimentary lithium still faces technical risks, notably in reagent optimization, acid recovery, and clay variability. However, the commercial potential is undeniable. With multi-billion tonne deposits and vertically integrated strategies now backed by federal funding and corporate offtakes, the U.S. has the ingredients for success.

Analysts expect that if Rhyolite Ridge and Thacker Pass successfully enter production within their projected windows, they could catalyze a wave of follow-on investment into exploration-stage projects like McDermitt and Big Sandy.

Permitting remains the wild card. The dual pressure of climate urgency and local environmental resistance will likely define the pace of buildout. The Biden administration’s recent streamlining of NEPA reviews and endangered species policy reform will be closely watched by the industry.